Despite the loss, the index closed the month five per cent higher, while analysts expect further gains at the start of February.

"I wouldn't be surprised if the Hang Seng Index rises further to test 24,000 before Chinese New Year," which starts on February 10, Castor Pang, head of research at Core Pacific-Yamaichi, told Dow Jones Newswires.

Wall Street provided a negative lead after the US Commerce Department said the world's biggest economy shrank at an annual rate of 0.1 per cent in the October-December quarter. Forecasts had been for a 1.0 per cent rise.

Eyes will now turn to Chinese manufacturing data due out on Friday, while Washington will later in the day unveil closely watched jobs figures for new clues as to the state of the economy.

In Hong Kong, oil giant CNOOC fell 2.3 per cent to $HK16.02 after setting a conservative output target for 2013 while lifting its capital expenditure budget.

Sourcing firm Li & Fung fell 3.7 per cent to $HK10.90, extending losses of more than 20 per cent so far this year after issuing a profit warning this month.